Job Anxiety,Work‐Related Psychological Illness and Workplace Performance

This article uses matched employee–employer data from the British Workplace Employment Relations Survey to examine the relationship between employee psychological health and workplace performance in 2004 and 2011. Using two measures of work‐related psychological health — namely employee‐reported job anxiety and manager‐reported workforce stress, depression and anxiety — we find a positive relationship between psychological ill‐health and absence, but not quits. The association between psychological ill‐health and labour productivity is less clear, with estimates sensitive to sector, time period and the measure of psychological health. The 2004–2011 panel is further used to explore the extent to which change in psychological health is related to change in performance.     

Cross‐National Analysis of Gender Differences in Job Satisfaction

Research over the past two decades has found significant gender differences in subjective job satisfaction, with the result that women report greater satisfaction than men in some countries. This paper examines the so‐called “gender paradox” using data from the European Social Survey for a subset of fourteen countries in the European Union. We focus on the hypothesis that women place higher values on certain work characteristics than men, which explains the observed differential. Using estimates from Probit and ordered Probit models, we conduct standard Blinder–Oaxaca decompositions to estimate the impact that differential valuations of characteristics have on the gender difference in self‐reported job satisfaction. The results indicate that females continue to report higher levels of job satisfaction than do men in some countries, and the difference remains even after controlling for a wide range of personal and job characteristics and working conditions. The decompositions suggest that a relatively small share of the gender differential is attributable to gender differences in the weights placed on working conditions in most countries. Rather, gender differences in job characteristics contribute relatively more to explaining the gender–job satisfaction differential.     

Collective Bargaining and Technological Investment: The Case of Nurses’ Unions and the Transition from Paper‐Based to Electronic Health Records

Does the presence of a unionized nursing workforce retard US hospitals’ transition from paper‐based to electronic health records (EHRs)? After tying archival data on hospitals’ structural features and health information technology (IT) investment patterns to self‐gathered data on unionism, I find that hospitals that bargain collectively with their registered nurses (RNs) appear to delay or forego the transition away from paper, consistent with existing theory and research in industrial relations and institutional economics. However, this relationship is fully mediated by a hospital's payer mix: those serving a larger share of less lucrative, elderly, disabled and indigent patients are more likely to adopt EHRs if they are unionized than if they are not, a result that holds even at the median payer mix. Indeed, this accords with research on the interplay of labour and technology as the aforementioned dynamics are driven entirely by RN‐exclusive bargaining units for whom the new IT serves as a complement rather than as a substitute in production. Given the outsized role that unions play in the US healthcare sector, the overall sluggish performance of the sector, and the expectations that policymakers have for EHRs, evidence that these unions are welfare‐enhancing should be welcome news.     

Job Lock: Evidence from a Regression Discontinuity Design

Employer‐provided health insurance may restrict job mobility, resulting in “job lock.” Previous research on job lock finds mixed results using several methodologies. We take a new approach to examine job lock by exploiting the discontinuity created at age 65 through the qualification for Medicare. Using a novel procedure for identifying age in months from matched monthly Current Population Survey data and a relatively unexplored administration measure of job mobility, we compare job mobility among male workers in the months just prior to turning age 65 to job mobility in the months just after turning age 65. We find no evidence that job mobility increases at the age 65 threshold when Medicare eligibility starts. We also do not find evidence that other factors such as retirement, reduction in hours worked, Social Security eligibility, pension eligibility, and sample changes confound the results on job mobility in the month individuals turn 65.     

The Role of Information Technologies in Enhancing R&D–Marketing Integration: An Empirical Investigation

The effective integration of research and development (R&D) and marketing contributes to the development of successful new products. Barriers such as physical separation of R&D and marketing, goal incongruity, and cultural differences hamper the cross‐functional cooperation. However, it may not be either possible or desirable to eliminate the cross‐functional integration barriers in practice. Previous research findings suggest that information technology (IT) can be used to reduce the negative impact of the barriers. This paper examines the moderating role of communication technologies (ITc) and decision‐aiding technologies (ITd) in improving the R&D–marketing integration in new product development. The empirical findings from analyzing data on 171 new product development projects suggest that both IT systems can be used to reduce the negative impact of physical separation, goal incongruity, and cultural differences on R&D–marketing integration. However, effectiveness of the two types of IT differs. While IT_c appears to be more effective than IT_d in overcoming the constraint of physical separation, IT_d is more effective than IT_c in reducing the negative impact of goal incongruity and cultural differences. IT_c is found to have the strongest effect on reducing the negative relationship of physical separation and integration, a less strong effect on cultural differences, and a weak effect on goal incongruity. Conversely, IT_d is found to have a strong effect on goal incongruity. These empirical findings provide guidelines for project managers using a specific IT to address a specific integration barrier. If the major barrier is physical separation, IT_c is the best solution. On the other hand, if the major barrier is goal incongruity, IT_d is the best solution. In addition, it is important for management to note that IT requires more than simply installing computer hardware and software. In addition to investing in those “hard” improvements, project managers should strive to create a supportive “soft” environment by consistently improving members' IT experiences and familiarity. In the process of the continuous development of IT, state‐of‐the‐art technologies should be introduced in a timely manner and be made accessible to all team members. Finally, project managers should frequently observe their industry peers' IT usage to keep up with advances.     

Lead Users and Early Adopters on the Web: The Role of New Technology Product Blogs*

Lead users and early adopters are often blogging or reading and commenting on blogs. Blogs, which are characterized by postings, links, and readers' comments, create a virtual “community” of blogger and readers. Members self‐select, and then the community gels around a theme or idea, product, industry, hobby, or any other subject. While community creation is one chief function of blogs, the information‐sharing, entertainment, or self‐ or value‐expressive functions are also important. Thus, new product development (NPD) managers can glean a great deal of information about what these audiences are thinking. The significance of blogging to NPD managers also lies in the shift of focus from being separate from to being immersed in these communities. Immersion enhances the potential of close relationships, sharing experiences, and co‐creating value with blogging communities through innovation. The focus of the study is on the roles of blogs in new product development, and an exploratory content analysis of new technology product blog postings is described. The goal was to examine what blogs actually say (and don't say) and to classify content based on the core elements of the marketing mix: product (including attributes and service aspects); price (including price comparisons); channel; and promotion. The bulk of the content was in the product category: for example, features (mentioned by 87.14%); overall evaluations (52.86%); performance (28.57%); compatibility (27.14%); ease of use (20%); and style (17.14%). About half discussed price, and about half discussed some channel aspect. The content is analyzed in detail, and implications for NPD mangers are discussed. People voluntarily join new product blogging communities, and if the manager of that product is not “present” (at least as an observer of this “straw poll”) an entire new product marketing agenda can be set by the community. Implicitly or explicitly, blogs can position the value proposition of the product in a prime target audience's mind. Such positioning could be advantageous or catastrophic as far as the NPD manager is concerned.     

Building a Measurement Model for Market Visioning Competence and Its Proposed Antecedents: Organizational Encouragement of Divergent Thinking,Divergent Thinking Attitudes,and Ideational Behavior

The overall question that this research seeks to answer is the following: Are there individual and/or organizational resources related to “divergent thinking” that enhance or inhibit the firm's market visioning competence in the case of radical innovation? In order to answer this question, in this paper, the key focus is on the realm of potential divergent thinking‐related resources that the firm may possess and access to aid in the creation and development of an effective market visioning competence. In particular, individual‐level factors related to divergent thinking capabilities and, at the organizational level, encouragement of such capabilities, are investigated. Specifically, we propose that two organizational‐level factors related to organizational encouragement of divergent thinking (“encouraging ideas” and “encouraging diversity”), two individual‐level divergent thinking attitudes factors (“openness” and “ability to move from divergent thinking to convergent thinking efficiently and effectively”), one individual‐level ideational behavior factor (“ability to generate new ideas”), and a further individual cognitive factor (“need for cognition”) have direct impacts on market visioning competence. Scales are then developed and tested for measuring these potential antecedents, and they are included in a measurement model with market visioning competence to enable further research.     

Mutual commitment to support exchange: relation‐specific IT system as a substitute for managerial hierarchy

This paper examines the effects of information technology (IT) on the governance of vertically related firms. We propose that a highly relation‐specific IT system in inter‐firm transactions plays a key role in the resulting inter‐firm governance as a mutual sunk‐cost commitment, in terms of leading to both less vertical integration (i.e., a change in governance mode as a first‐order effect) and a smaller number of suppliers (i.e., a change within a governance mode as a second‐order effect). As a result, this highly relation‐specific IT system (bilateral investment) can be an alternative governance mode of electronic integration that acts as a substitute for managerial hierarchy and vertical financial ownership. From a strategic management perspective, this paper provides transaction costs and resource‐based explanations on IT systems' impact on the organizational boundary decision and its impact on the likelihood of the firm achieving sustainable competitive advantage. Copyright © 2006 John Wiley & Sons, Ltd.     

Climbing the Job Ladder: New Evidence of Gender Inequity

An explanation for the gender wage gap is that women are less able or less willing to “climb the job ladder.” However, the empirical evidence on gender differences in job mobility has been mixed. Focusing on a subsample of younger, university‐educated workers from an Australian longitudinal survey, we find strong evidence that the dynamics of promotions and employer changes worsen women’s labor market position.     

Retirement Reforms: Occupational Strain and Health

A concurrent increase in the demand for state age pensions and health care has led to reforms in delaying retirement. We employ thirteen waves of longitudinal data to examine the mental and physical health effects of Australian men and women at “early” and “traditional” retirement. We use before and after propensity score matching (PSM) estimates between treatment and control groups of retired and not retired individuals aged 60 and 65 years. The results indicate a negative health effect according to occupational strain for both genders but a positive mental health effect for retirees with access to self‐funded retirement.     

California's Health Insurance Act of 2003: View of the Market

This “play or pay” mandate would have required California employers to either provide medical insurance for their employees or pay into a state insurance fund. Although the law ultimately did not go into effect, movements in shareholder wealth provide evidence about the differential effects of such health‐care mandates on various types of employers. Large or unionized firms had no negative effects; expected profits declined most for firms with 50–199 employees.     

Job Satisfaction in Britain: Coping with Complexity

Claims for a growth of despondency in the British workforce in the 1990s, based on job satisfaction data, are questioned by an evaluation of: (i) the bases of comparison, (ii) features of job‐satisfaction measures, (iii) the properties of key data sets and (iv) inferences drawn from the data. A more complex situation is presented showing significant falls in satisfaction with the job facets, the work itself, and hours worked; significant rises in satisfaction with total pay and security of job; a steep decline in overall job satisfaction among women and stable or slightly rising overall job satisfaction among men. Trends in job quality, workforce composition, the economic cycle and changing work values among women, rather than generalized despondency, are proposed as sources for hypotheses for future research. The latter should include a review of data requirements, and research on the performance of measures of job satisfaction.     

External Churning and Internal Flexibility: Evidence on the Functional Flexibility and Core-Periphery Hypotheses

Functionally flexible systems for organizing work may reduce job instability and insecurity by reducing employers' reliance on job cuts or contingent work to respond to changes in their environments. Related arguments hypothesize that contingent work allows firms to adjust labor while "buffering" their core of permanent workers from job instability. We find evidence that internally flexible work systems are associated with reduced involuntary and voluntary turnover in manufacturing but that contingent work and involuntary turnover of the permanent workforce are positively related regardless of sector, in contrast to the prediction of the core-periphery hypothesis.     

REIT Stock Price Volatility and the Effects of Leverage

This article sheds light on several puzzling empirical observations. We examine the volatility implications of equity Real Estate Investment Trust (REIT) stock returns over the sample period from January 1985 through October 2012. We find a negative “leverage effect” in the pre‐ and post‐Greenspan era, but not during the Greenspan era (circa 1994–2006). We argue that the positive elasticity of variance with respect to the value of equity during the Greenspan era can be explained by a decline in the spread between the yield on commercial mortgages and 10‐year Treasuries, which triggered a wealth transfer from REIT equity holders to REIT debt holders. We also argue that the declining commercial‐mortgage‐10‐year‐Treasury yield spread during the Greenspan era allowed REITs to take on far more risk than most people realized. We then document that average REIT stock return volatility increased significantly in the 2007–2010 period in the midst of a historic decline in REIT stock prices. The results have significant implications for the good deal of interest and debate in the media over the status of REITs and whether equity REITs have become excessively risky relative to the returns they generate.     

From Internal to Network Labor Markets? Insights on New Promotion Processes from the Call Center Industry

Research on network forms of organization suggests that “business units” may be a more useful analytical unit than “firms” in understanding restructuring of internal labor markets. We find evidence for this proposition by analyzing promotion opportunities in 1760 call centers in sixteen countries. We find substantial differences in promotion opportunities internal to the unit versus elsewhere, related to the use of explicit versus tacit knowledge in performance evaluation, distinctions between unit‐specific and general‐firm knowledge, and network‐bridging organizational characteristics.     

Why Do Employers Retrain At‐Risk Workers? The Role of Social Capital

Why are some employers willing to retrain workers who are at risk of layoff for new jobs in their organization, whereas others “churn” their workforce through layoffs and outside hiring? The question seems central to understanding why some employers and some jobs are “good,” whereas others are not and, more generally, for understanding employment security. The arguments herein use national probability data to examine this question and find that the retraining option is associated with preserving the social capital among current employees. Employers who make greater use of work systems that rely on social capital are more likely to retrain their workers. Alternative explanations—that retraining is an employee benefit associated with employee‐friendly policies or is part of overall strategy to invest in training—receive no support. These results extend our understanding of the role that social capital can play in organizations. They also suggest that being a “good” employer may have a great deal to do with other choices about systems of work organization.     

Age and Work‐Related Health: Insights from the UK Labour Force Survey

Data from the UK Labour Force Survey (LFS) are used to examine two methodological issues in the analysis of the relationship between age and work‐related health. First, the LFS is unusual in that it asks work‐related health questions to those who are not currently employed. This facilitates a more representative analysis than that which is constrained to focus only on those currently in work. Second, information in the LFS facilitates a comparison of work‐related health problems that stem from current employment to a more encompassing measure that includes those related to a former job. We find that accounting for each of these sources of bias increases the age work‐related health risk gradient, and suggest that ignoring such effects will underestimate the work‐related health implications of current policies to extend working lives.     

Is Job Insecurity Higher in Leveraged Buyouts?

This article assesses whether job insecurity is higher in leveraged buyouts (LBOs) than elsewhere. It draws on matched employer‐employee data from the British 2011 Workplace Employment Relations Study linked to data from the Centre for Management Buyout Research. The analysis finds no consistent evidence of higher job insecurity in LBOs as measured by workforce reduction practices (redundancy rates, job security/no‐compulsory redundancies policies and redundancy consultation), dismissal rates, labour use practices (non‐permanent employment contracts and outsourcing) and employees’ job security perceptions. Job insecurity is no higher in either current or former LBOs than elsewhere. Contrary to what might be expected, it is also no higher in private equity (PE)‐backed LBOs, management buy‐ins or high‐debt LBOs and there is only partial and weak evidence of higher job insecurity in short‐hold LBOs. Job insecurity is also no higher in perfect storm LBOs (PE‐backed management buy‐ins that are short‐holds with high‐debt). Concerns over the negative implications of LBOs for job security thus appear misplaced.     

Firm‐Size Wage Gaps along the Formal‐Informal Divide: Theory and Evidence

Observationally equivalent workers are paid higher wages in larger firms. This fact is often called the “firm‐size wage gap” and is regarded as a key empirical puzzle. Using microlevel data from Turkey, we document a new stylized fact: The firm‐size wage gap is more pronounced for informal (unregistered) jobs than for formal (registered) jobs. To explain this fact, we develop a two‐stage wage‐posting game with market imperfections and segmented markets, the solution to which produces wages as a function of firm size in a well‐defined subgame‐perfect equilibrium. The model proposes two explanations. First, taxes on formal employment generate a wedge between formal and informal size wage gaps. Thus, government policy can potentially affect the magnitude of the firm‐size wage gaps. The second explanation features a market‐based framework with strategic interactions. Relative to small firms, large firms typically post higher wages for both formal and informal jobs. A high‐wage formal job attracts a larger pool of applicants than a high‐wage informal job. The larger pool of applicants for the formal job, in turn, allows the firm to somewhat lower the initial wage offer, while this second‐round effect is negligible for informal jobs. As a result, size differentials are lower in formal jobs than informal jobs. We argue that the observed patterns in the use of social connections in job search and heterogeneity in job preferences can be used to justify the validity of this second mechanism.     

Community Colleges and Employers: How Can We Understand their Connection?

This paper uses an original, nationally representative survey of manufacturing establishments to shed light on the interaction of employers with community colleges, including information on skill requirements and human resource practices. We test three hypotheses: that high‐skill employers use community colleges, that community colleges are a substitute for employer‐based training, and that community colleges are a complement to so‐called “high‐road” or “high‐commitment” human resource practices. We find limited utilization of community colleges by employers, but those that do establish a relationship are generally satisfied. Employers that demand high skills are more likely to use community colleges, as are “high‐commitment” firms.